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Franchising in Belarus: Slowly Coming of Age in the Former Soviet Republic State

Although Belarus does not have its own franchise law code, the Civil Code of Belarus, which was adopted on Dec. 7, 1998 and entered into force on July 1, 1999, contains Article 53 dealing with a franchise, or as it says in the Code 'Complex business licence.' On Aug. 18, 2004, amendments to this regulation were adopted and entered into force on Feb. 27, 2005. Not surprisingly, the terminology used in Article 53 is the same as in the Russian Civil Code.

Before the new legislation came into force, franchising was mostly unregulated in Belarus. There was only one article in the Civil Code that referred to franchising. This rather unhelpfully provided that franchising could only be used 'in cases, provided by the legislation.' As the law did not provide for the use of franchising, most companies used 'licensing agreements' instead to govern their contractual relationships.

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